Question 18 This year, Fred and Wilma, married filing joint, sold their home (selling price $1,500,000; cost $250,000). All closing costs were paid by the buyer. The couple owned and lived in their home for 20 years. How much of the gain is included in gross income?

Question 19 Investing in municipal bonds to avoid paying tax on interest earned and to earn a ligher after-tax equivalent yield is an example of: